Desk filled with work supplies and tax receipts

How to Use a Tax Receipt for a Charitable Donation Deduction

When you donate your car to charity, you can make a real difference for people in need whether you live in Toronto, Winnipeg or somewhere in between. And you can even claim your charitable donation as an income tax deduction. Keep reading to learn more about how you can donate your car for a charitable donation tax receipt and claim a deduction on your income taxes.

Relevant Documents

In order to claim a charitable tax donation you need an official donation receipt. An official receipt must contain the following information:

  • Contact information for the Canada Revenue Agency (CRA)
  • The charity’s name, address and registration number
  • The date the donation was made
  • The date the receipt was issued
  • The eligible amount (if the donation was a gift)
  • The name of the city in which the receipt is issued
  • The signature of the person in the charity who received the donation 
  • Your complete name and address

You also need to make sure the organization you’re making the donation to is recognized by the CRA as a registered charity or qualified done. This would not be something to worry about with Cars 4 Cures as we have done our due diligence and all of our partnered charities are registered charities.

Registered charities can include:

  • Community associations
  • Cultural associations
  • International charity organizations
  • Municipal governments
  • Religious and Spiritual associations
  • Sports teams and associations
  • The United Nations

If you would like to confirm that the charity you would like to choose to donate your vehicle to is a recognized registered charity, check the CRA’s Charities Listings before you make a donation. Or simply choose one of our partner charities when you donate your car to charity in Winnipeg, Toronto or elsewhere in Southern Ontario with Cars 4 Cures.

Deadline to File the Claim

Always keep receipts for any charitable donations you make for five years after filing the initial claim. You can claim any donations made within the tax year that you’re filing or within the previous five years if the amounts are still unclaimed. 

How it Affects Your Taxes

When you donate your car for a tax receipt you’ll qualify for a tax deduction at both the federal and provincial level. The rates vary from province to province but are always calculated as a percentage of the total amount that you donated. This percentage then reduces the amount of taxes you pay. 

Donating an unwanted or unused vehicle can make a real difference in the lives of those in need. Contact Cars 4 Cures today to learn more about how you can donate your used car, recreational vehicle, van, motorcycle, boat or other vehicle to charity for a tax receipt to obtain a deduction in Winnipeg or Toronto and the surrounding areas.